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Economics

Question:

1. Read the question.

2 Record your response to the question in the text box below.

Assessment task:

The Government subsidises TAFE courses so that the TAFE courses become more affordable. Would you consider this a positive externality or negative externality?

Explain the externalities within the context of market failure. Will the subsidy shift the supply and demand curves? Draw a diagram to show the Demand and Supply curves before and after the Government Subsidies TAFE courses.

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Microeconomics, Economics

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